Last Updated: March 06, 2024, 11:40 IST
Zomato Share Price: Shares of online food aggregator Zomato Ltd declined as much as 3.58 per cent to hit an intraday low of Rs 160.10 apiece on the BSE after 19 crore shares worth Rs 3,112 crore, which account for 2.1 per cent stake, exchanged hands on the BSE.
There were already reports that a shareholder Antfin Singapore Holdings Pte was looking to offload up to 2 per cent stake or 17.64 crore shares in Zomato for Rs 2,800 crore through a block deal. However, News18.com could not verify the report independently.
In December 2023, SoftBank’s venture capital fund SVF Growth (Singapore) PTE Ltd exited the online food aggregator by selling 1.1 per cent stake. SVF Growth offloaded 9,35,69,368 Zomato shares at an average price of Rs 120.50. It sold a similar shares in the online food delivery platform in October 2023 at an average price of Rs 111.20 and 10,00,00,000 shares in August 2023 at an average price of Rs 94.70, data available with NSE suggested.
CLSA said the adjusted EBITDA margin for food should gradually move to Zomato’s medium-term guidance of 5 per cent-6 per cent while quick commerce remains on track to hit adjusted Ebitda breakeven in FY25.
“For our relative valuation, we move to a PE-based multiple of 40.6x (30 per cent discount to our QSR multiple of 58x) on FY26 EPS of Rs5.85. We assign a 30 per cent discount to our QSR coverage despite faster growth as Zomato is yet to prove the sustainability of profit over extended periods, and there remains lingering concern over pricing power. We also roll forward our valuation to FY26,” it said.
Zomato reported a consolidated net profit of Rs 138 crore for the quarter ended December, compared to a net loss of Rs 347 crore in the year-ago period. This was the third straight quarter of profits for the company. Its revenue from operations surged 69 per cent on year to Rs 3,288 crore.
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